Diggers & Dealers opens in Kalgoorlie

OUT AND ABOUT: From a spectator’s point of view it was something of an anti-climax when Diggers & Dealers forum chairman Barry Eldridge opened this year’s conference.

Opening the 2010 conference Eldridge reminded delegates that in its entire history Diggers & Dealers had maintained an arm’s length from federal politics.

“That is about to change,” he growled at the time.

Last year the conference opened with the sword of the Minerals Resource Rent Tax casting a shadow across the booths and brows of the mining industry heavyweights in attendance.

The MRRT is back to haunt the conference again this year, this time joined by its new friend in the Federal Government’s Climate Change Plan, better known to all and sundry as the Carbon Tax.

Eldridge was much more measured and composed this year as he began quietly welcoming delegates and dignitaries.

“Last year I made some reasonably direct comments about the impact our politicians have had on the resources industry in Australia,” he said opening his address.

“We had an election looming and the threat of a proposed mining tax.

“We’ve had the election and you can judge for yourself whether or not Australia traded up.

“We still have the threat of a mining tax, albeit somewhat narrower than what was proposed initially and still not yet introduced into parliament, although I suspect his will happen now that the balance of power in the Senate is with The Greens.

“God help us.”

Eldridge congratulations the industry’s efforts in presenting its case to the people of Australia’s of the negative effect the mining tax it says would have had on investment in Australia.

He was reluctant, however, to accept the promise made by Liberal Party Leader Tony Abbott that his party would remove the resources tax if it were elected on face value.

“This is positive, but my cynicism suggests that there are not many existing taxes that get removed and there is always an excuse for maintaining a revenue stream,” Eldridge said.

“As an industry we need to remain committed to ensuring that the Liberals deliver their promise.”

Eldridge told the audience he would not be making any comment on the potential impact proposed increases in State Royalties announced by the Western Australian government in May would have on the industry.

“Whether this is justifiable or not, and whether the relationship and communication of protocols between the federal and state governments are effective is not the issue,” he went on to say.

“Public statements to state budgets will result in Western Australia being penalised through reduced infrastructure spending, frankly is just immature and not useful to an industry that needs to demonstrate to investors, financiers and customers that projects can be developed and appropriate financial returns can be delivered.”

He then went on to say he would also not be making any comment on Prime Minister Julia Gillard’s new Carbon Tax assuring the audience they were all intelligent enough to know it is bad.

“We don’t have enough time to analyse the future of the resources sector under influences of Bob Brown and The Greens,” he continued.

“And frankly, heaven help us in the next period with the influence that this extreme balance of power might have on our industry with the government having to allow The Greens to punch well above their political pedigree.

“The extreme idealistic, but frankly, economic-superficial policies that now have political substance while we have a hung parliament has to be one of the most worrying long-term issues Australia and the resources sector has ever faced.”